Stigmatized markets are those where either the products/services, or the consumers, or both, have been collectively, negatively stereotyped and devalued by one or more stakeholder audiences in ways that discredit the overall market. Many stigmatized markets exist, and many flourish, yet little systematic attention has focused on entry into such markets. Our article addresses this gap by conceptualizing various strategies for entering stigmatized markets. We further present propositions regarding the market‐level factors that can influence which of these strategies firms will choose to employ. The contributions include: conceptually clarifying the nature of stigmatized markets; identifying additional types of entry strategies relevant for entering stigmatized markets; theorizing the conditions under which firms would choose one entry strategy over another; and opening up for consideration the effects that market entry may have on stigmatized actors in targeted markets.
Disruptive innovation changes the basis of competition within an industry and poses substantial threats for market incumbents. While researchers have focused on whether incumbents can successfully adapt, we know little about how potentially disruptive innovation may be avoided. Studying clean technology in Canada, we examine incumbent resistance when potentially disruptive technologies are seen as socially beneficial. We identify actions taken by incumbents and other socio-technical regime actors to respond to the issue while simultaneously enacting legitimate stabilizing mechanisms within the regime's institutional infrastructure. Specifically, temporal and resource-based actions led to temporal complexity for disruptive cleantech entrepreneurs, and evaluation structuring work led to latent control of the cleantech category, privileging incumbents and resulting in unobtrusive maintenance. Our findings contribute to the disruptive innovation and institutional theory literatures by showing how disruption may be stalled by the enactment of legitimate elements of the institutional infrastructure rather than direct institutional defence.
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Unobtrusive maintenanceEntrepreneurs are undermined 'Government of [another province] announced five projects today in renewable and alternative energy…So if we get one of those awards, we'll go ahead. If we don't, we'll close our offices and do something else'. (EPS05, Entrepreneur) '[When solar subsidies were cut by 27%,] the industry was blindsided. Many solar installers had already ordered inventory, put down deposits, and hired and trained staff to meet expected demand' (Star, 19 Jul 2010)
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